TSL net income jumps 75%

Published: 01 February 2018

LISTED agro-industrial group TSL has recorded a 75 percent increase in net income to $4.8 million in the full year to October 2017 underpinned by the recovery of the firm's agriculture operations.

The agro-industrial concern revealed this in audited financial results for the year ended October 31, 2017.

In the prior financial year, TSL net income stood at $2.8 million.

The group, which has interests in logistics, agriculture and real estate, said it was financially sound and as such was able to meet its financial obligations.

As at October 31, 2017, the group's revenues increased by seven percent to $50.6 million while operating profit also rose by 24 percent to $7 million.

"Profit before tax at $6.4 million, was 70 percent higher than prior year. This increase was 50 percent before taking into account a $0.5 million reduction in fair value of biological assets in the prior year as a consequence of the new requirement of International Accounting Standards," said the group.

TSL said its agriculture operations registered a 37 percent improvement in revenue to $29.1 million from $21.3 million in the prior year.

The agriculture operations after tax profit during the period under review also increased to $4.4 million from $1.4 million in the year ended October 31, 2016.

The logistics operations revenue fell by 19 percent to $14.6 million while its after tax went down by 33 percent to $800 000 largely due to depressed performance recorded by Bak Logistics.

"Bak Logistics was adversely affected by low volumes in its general cargo, inland ports and distribution division. New contracts have been signed with shipping lines and these should translate into incremental business in the coming years," said TSL.

The real estate cluster registered decline in revenue and profit after tax of $3.8 million and $1.6 million respectively owing to higher level of voids and margin compression.

The group said throughout the period under review, the economic environment presented many challenges due to foreign currency shortages and low industrial activity.

"Favourable rainfall patterns gave a boost to the production of cereal crops while dam levels were raised significantly, improving the prospects for increased irrigation countrywide," said TSL.
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